Western Lithium USA Corporation

Western Lithium USA Corporation

February 25, 2009 08:30 ET

Additional Drilling at Western Lithium's Property Supports Chevron's Historical Lithium Resource Estimate

RENO, NEVADA--(Marketwire - Feb. 25, 2009) - Western Lithium Canada Corporation ("Western Lithium" or the "Company") (TSX VENTURE:WLC) is pleased to announce that additional drilling on the upper more northerly lenses (WLC Stages II through V), which were originally identified by Chevron Resources ("Chevron") in the early 1980's, has confirmed the presence of lithium. WLC had previously announced the southern-most Stage I (PCD) lens contained Indicated Resources of 48.1 million tonnes grading 0.27% lithium, or the lithium carbonate equivalent (LCE) of 688,000 tonnes LCE and Inferred Resources of 42.3 million tonnes grading 0.27% lithium, for an equivalent of 606,000 tonnes LCE, both at a cut-off grade of 0.20% Lithium.

"The results of this recent drilling on the upper lenses gives a greater level of confidence in what Chevron originally reported, and positions the Company with a potentially very significant lithium deposit," said Western Lithium's President, Jay Chmelauskas. "This drilling on the upper lenses supports the envisioned staged development of the project."

Western Lithium is a Canadian based resource company focused on the development of a large potential lithium resource located in the McDermitt Caldera in northwestern Nevada through its wholly owned subsidiary, Western Lithium Corporation. The company is positioning itself to become a reliable and scalable, United States based strategic supplier of battery grade lithium carbonate to support the development of electric/hybrid cars and mobile electronics of the future.

WLC has completed drilling a series of exploration core holes in the northern four lithium lenses previously identified by Chevron. These are the North, North Central, South Central and South lenses referred to by WLC as Stages II through V. They are located from approximately 8 to 24 km north of the Stage I (PCD) lens and are approximately 300 meters higher in elevation. The purpose of the drilling program, carried out in late 2008, was to help verify Chevron's initial results and thereby reinforce the confidence level of their original findings. WLC's previous detailed evaluation and drilling program on the Stage I (PCD) lens in 2008 supported Chevron's estimate of grade and extent of lithium mineralization for the southernmost lens. A total of five holes were drilled in this most recent program, one each in the North, North Central and South Central, and two holes in the South lens. The South lens is the largest lens identified by Chevron as having over one million tons of lithium metal.

To minimize surface disturbance and permitting requirements the five holes were all drilled along existing roads. Locations were chosen that were in relatively close proximity to known Chevron holes so comparisons could be made.

Results of WLC's drilling confirm the presence of lithium in the upper Chevron lenses.

- Drill hole Li-01 was in the North lens (Stage V) and averaged 1600 ppm lithium over a 50 meter interval starting at a 4 meter depth. This hole was within 200 meters of an original Chevron hole that averaged 2100 ppm lithium over a 60 meter interval.

- Drill hole Li-02 was in the North Central lens (Stage IV) and averaged 2400 ppm lithium over a 40 meter interval starting at a depth of 8 meters. This hole was within 15 meters of an original Chevron hole that averaged 2600 ppm lithium over a 61 meter interval.

- Drill hole Li-03 was in the South Central lens (Stage III) and averaged 2600 ppm lithium over a 40 meter interval starting at a depth of 21 meters. This hole was within 6 meters of an original Chevron hole that averaged 2600 ppm lithium over almost the identical interval.

- Drill hole Li-04 was in the South lens (Stage II) and averaged 2000 ppm lithium over a 46 meter interval starting at a depth of 8 meters. This hole was within approximately 90 meters of an original Chevron hole that averaged 2400 ppm over an interval of 64 meters.

- Drill hole Li-05 was also in the South lens (Stage II) and averaged 2400 ppm lithium over a 33 meter interval starting at a depth of 8 meters. This hole was within 30 meters of an original Chevron hole that averaged 2900 ppm lithium over a similar interval.

The upper four lenses (WLC Stages II through V) comprise relatively unaltered claystones and volcaniclastic sandstone which are the dominant rock types. Lithium-rich beds are generally 1 to 10 meters thick with some as much as 30 meters thick. Much of the area encompassing the upper lenses has little or no overburden with the claystone outcropping in places. Colluvium up to 10 meters thick occasionally covers the claystone.

Further engineering work is currently underway to determine scoping level economics, expected later this year, to process the lithium bearing clay and determine an optimal process flow sheet for development.

Qualified Person

Dennis Bryan, Vice President of Corporate Development for Western Lithium, is the Qualified Person that reviewed the technical data in this press release.

Western Lithium Corporation is a mineral exploration and development company with a focus on lithium. The company has an exploration property in Kings Valley, Nevada through a lease option agreement with affiliate Western Uranium Corporation.

Forward Looking Statements

Certain of the statements made and information contained herein is "forward-looking information" within the meaning of the Ontario Securities Act. Forward-looking information is subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, risks and uncertainties relating to foreign currency fluctuations; risks inherent in mining including environmental hazards, industrial accidents, unusual or unexpected geological formations, ground control problems and flooding; risks associated with the estimation of mineral resources and reserves and the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; the potential for and effects of labour disputes or other unanticipated difficulties with or shortages of labour or interruptions in production; actual ore mined varying from estimates of grade, tonnage, dilution and metallurgical and other characteristics; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations; uncertain political and economic environments; changes in laws or policies, foreign taxation, delays or the inability to obtain necessary governmental permits; and other risks and uncertainties, including those described in each management discussion and analysis. Forward-looking information is in addition based on various assumptions including, without limitation, the expectations and beliefs of management, the assumed long term price of lithium; that the Company can access financing, appropriate equipment and sufficient labour and that the political environment where the Company operates will continue to support the development and operation of mining projects. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward-looking information. Accordingly, readers are advised not to place undue reliance on forward-looking information.

Cautionary Notes to Investors - Reserve and Resource Estimates

In accordance with applicable Canadian securities regulatory requirements, all mineral reserve and mineral resource estimates of the Company disclosed in this release have been prepared in accordance with Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"), classified in accordance with Canadian Institute of Mining Metallurgy and Petroleum's "CIM Standards on Mineral Resources and Reserves Definitions and Guidelines" (the "CIM Guidelines").

The Company uses the terms "mineral resources", "measured mineral resources", "indicated mineral resources" and "inferred mineral resources". While those terms are recognized by Canadian securities regulatory authorities, they are not recognized by the United States Securities and Exchange Commission (the "SEC") and the SEC does not permit U.S. companies to disclose resources in their filings with the SEC.

Pursuant to the CIM Guidelines, mineral resources have a higher degree of uncertainty than mineral reserves as to their existence as well as their economic and legal feasibility. Inferred mineral resources, when compared with measured or indicated mineral resources, have the least certainty as to their existence, and it cannot be assumed that all or any part of an inferred mineral resource will be upgraded to an indicated or measured mineral resource as a result of continued exploration. Pursuant to NI 43-101, inferred mineral resources may not form the basis of any economic analysis, including any feasibility study. Accordingly, readers are cautioned not to assume that all or any part of a mineral resource exists, will ever be converted into a mineral reserve, or is or will ever be economically or legally mineable or recovered.

The TSX Venture Exchange has neither approved or disapproved of the contents of this press release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that tern is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

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